Tax and Cut

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A media organisation funded by a flat-rate levy has an unusual competitive advantage. That arrangement is enjoyed by the BBC, which has a responsibility to use licence-payers’ money wisely. Axing BBC Three is a big strategic decision and it is welcome. Danny Cohen, the Controller of BBC Television, said yesterday that BBC Four would also face closure if the licence fee were under threat. The risk is that a headline-grabbing and high-profile closure will alleviate public pressure on the BBC to seek less dramatic but cumulatively more important economies.